How To Find The Best Investment Properties In The Country | Off-Market, Pre-Market and On-Market

Summary

This script offers DIY investors insights into sourcing properties through various channels, emphasizing the competitive nature of on-market listings and the potential of pre-market and off-market opportunities. It discusses the challenges of speed and competition in on-market searches, the benefits of pre-market listings for sellers, and the difficulty of finding off-market properties. The speaker provides tips for investors, such as building rapport with real estate agents, avoiding disclosure of budget limits, and the importance of volume and relationship-building in securing deals.

Takeaways

• 🏡 The majority of property purchases (around 70%) are done on the market, with platforms like realestate.com and domain being the primary sources for these listings.
• 🔍 On-market properties are highly competitive, requiring quick decision-making and actions from buyers and investors.
• 🚀 Speed is crucial when dealing with on-market properties due to high competition, and there can be exceptions with price reductions for slower-moving properties.
• 🤔 Pre-market properties are those that are about to be listed but are not yet publicly available, offering a potential advantage for investors who can act quickly.
• 🏠 Reasons for selling pre-market include avoiding the stress and costs of preparing a home for open market listings, or due to personal circumstances such as moving or financial hardship.
• 🤝 Building rapport with real estate agents is essential for accessing pre-market and off-market opportunities, as these are not typically advertised widely.
• 📉 Off-market properties are not listed on public platforms and are harder to find, often requiring direct contact with agents or sellers.
• 💰 Off-market properties are not necessarily undervalued; they can be overvalued, so due diligence is necessary to avoid overpaying.
• 📋 DIY investors should provide clear parameters to agents about what they are looking for, including location and property type, without disclosing their exact budget to avoid being pushed towards the maximum price.
• 🔑 Volume and relationship building are key for accessing better deals; advisory services have advantages in this area due to their scale and consistent purchasing power.
• ⏱ The process of sourcing properties, especially off-market ones, is time-consuming and requires significant effort in building relationships and filtering through opportunities.

Q & A

What percentage of properties are typically purchased on the market according to the transcript?

Just under 70% of properties are purchased on the market.

Which platforms are commonly used to find on-market properties?

Real estate.com and domain are the platforms where most on-market properties are listed.

What is the main challenge when dealing with on-market properties?

The main challenge is the competition, as these properties are available to everyone, including other home buyers and investors.

What does the term 'pre-market' refer to in the context of property listings?

Pre-market refers to properties that are being prepared for sale but have not yet been listed on the open market.

Why might a seller choose to sell their property pre-market instead of going through the open market?

Sellers might choose pre-market to avoid the hassle of preparing their home for open inspections and dealing with multiple potential buyers.

What is an off-market property and why are they harder to find?

An off-market property is one that will not be listed on the open market. They are harder to find because they are not advertised on common real estate platforms.

What are some reasons a property might be sold off-market?

Reasons for selling off-market include the seller's desire for privacy, financial hardship, or extenuating circumstances such as health issues or the death of an elderly family member.

What misconception exists about off-market properties in terms of their value?

A common misconception is that off-market properties are significantly undervalued, but in reality, they can often be overvalued without proper due diligence.

What is the importance of having pre-approval when reaching out to real estate agents about property opportunities?

Pre-approval signals to agents that you are a serious buyer and not just browsing, which makes them more likely to share pre-market or off-market opportunities with you.

Why is it not advisable to disclose your exact budget to real estate agents when discussing property opportunities?

Disclosing your exact budget may result in agents only showing you properties at the higher end of your range, potentially pushing you towards your maximum budget.

What is the role of relationship building with real estate agents when sourcing properties as a DIY investor?

Building rapport with agents is crucial as it can lead to access to pre-market and off-market opportunities, and agents are more likely to work with serious buyers who can move quickly on transactions.